Early Age Co., Ltd. (3248) AI Stock Analysis

• Market Cap: ¥2.85B
• Dividend Yield: 4.02%
• Average Volume (3M): 4.70K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.42
• Revenue Growth: -30.74%
• EPS Growth: -59.99%
• Country: JP
• Employees: 15
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 7.97
• Shares Outstanding: 3,181,000
• 10 Day Avg. Volume: 7,840
• 30 Day Avg. Volume: 4,703
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥954.00
• Price Target Upside: 5.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥952.00 ▲(5.54% Upside)

Early Age Co., Ltd. demonstrates strong financial performance and a positive technical outlook, supported by solid valuation metrics. The company's robust revenue and profit growth, along with efficient operations and cash flow generation, are significant strengths. The stock's upward trend and attractive dividend yield further enhance its appeal. However, the moderate leverage requires careful monitoring.

Early Age Co., Ltd. Business Overview & Revenue Model

Company Description

Early Age Co., Ltd. engages in the real estate business in Japan. It operates through Operation management business and Development and sales business segments. The Operation management business segment is involved in the leasing of owned and sub-leased properties; rental management and tenant intermediation for income-generating real estate; rental and management of parking lots; provision of rental management agency and cleaning equipment management; and renovation and maintenance services, such as restoration, repair works, and cleaning. The Development and sales business segment develops and sells commercial condominiums for rental business. The company also offers rental brokerage services for residential real estate, stores, offices, etc.; and consulting on the purchase and sale of income-generating real estate. The company was incorporated in 1986 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Early Age Co., Ltd. generates revenue through a diversified model that includes the sale of educational software licenses, subscriptions to digital learning platforms, and the provision of training services for educators. Key revenue streams consist of direct sales to schools and educational organizations, as well as partnerships with governmental and non-governmental organizations aimed at improving early childhood education. Additionally, the company may collaborate with technology firms to integrate their solutions into broader educational ecosystems, further enhancing their market reach and profitability.

Early Age Co., Ltd. Financial Statement Overview

Summary

Early Age Co., Ltd. exhibits strong financial performance with impressive revenue and profit growth, efficient operations, and robust cash flow generation. The company's moderate leverage and stable equity position provide a solid foundation, although the high debt level warrants careful monitoring.

Income Statement

Early Age Co., Ltd. has demonstrated strong revenue growth with a 37.3% increase in the latest year. The gross profit margin stands at 31.1%, and the net profit margin is 11.2%, indicating solid profitability. EBIT and EBITDA margins are 18.8% and 23.6%, respectively, showcasing efficient operational performance. The company has consistently improved its revenue and profitability over the years, reflecting a positive growth trajectory.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 1.93, suggesting a moderate level of leverage. The return on equity is 11.6%, indicating effective use of equity to generate profits. The equity ratio is 31.7%, reflecting a stable capital structure. While the company maintains a healthy equity base, the high leverage could pose risks in volatile market conditions.

Cash Flow

The company has achieved a significant turnaround in free cash flow, with a growth rate of 767.0% from the previous year. The operating cash flow to net income ratio is 3.94, and the free cash flow to net income ratio is 1.59, indicating strong cash generation relative to net income. The improvement in cash flow metrics highlights robust cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.89B	4.73B	3.44B	3.70B	3.34B	3.57B
Gross Profit	1.49B	1.47B	1.07B	1.15B	1.00B	1.05B
EBITDA	1.07B	1.12B	748.00M	847.28M	636.85M	686.14M
Net Income	539.59M	529.85M	326.99M	375.58M	258.52M	302.53M
Balance Sheet
Total Assets	14.53B	14.40B	13.49B	13.15B	13.42B	12.39B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.78B	920.87M	964.11M	1.03B	1.25B
Total Debt	9.20B	8.79B	8.56B	8.36B	9.02B	8.13B
Total Liabilities	9.98B	9.84B	9.35B	9.25B	9.69B	8.83B
Stockholders Equity	4.55B	4.56B	4.14B	3.91B	3.74B	3.56B
Cash Flow
Free Cash Flow	0.00	841.93M	-126.25M	719.45M	-939.60M	-596.51M
Operating Cash Flow	0.00	2.09B	840.21M	1.17B	375.17M	795.50M
Investing Cash Flow	0.00	-1.35B	-992.17M	-473.38M	-1.41B	-1.43B
Financing Cash Flow	0.00	118.27M	108.72M	-757.23M	806.27M	439.84M

Early Age Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 902.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3248, the sentiment is Positive. The current price of 902 is above the 20-day moving average (MA) of 878.75, above the 50-day MA of 854.04, and above the 200-day MA of 803.27, indicating a bullish trend. The MACD of 11.34 indicates Positive momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3248.

Early Age Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3248	78 Outperform	¥2.85B	12.59		4.02%	-30.74%	-59.99%
3280	76 Outperform	6.96B	3.40	14.04%	2.22%	27.67%	108.96%
8927	70 Outperform	16.04B	8.47	0.00%	2.21%	44.91%	37.67%
8940	68 Neutral	9.13B	5.10	12.48%	2.75%	4.90%	302.20%
3246	67 Neutral	6.82B	38.15	3.34%	3.58%	7.94%	-51.94%
3469	66 Neutral	3.64B	26.00	5.01%	1.45%	61.76%	0.00%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%